IMF warns of urgently needed reform in recession-hit Nigeria

Published on January 22, 2019 by

The International Monetary Fund has warned Nigeria that its economy needs urgent reform. A report by the IMF published on Wednesday has highlighted the risks to growth for the recession-hit country and the dangers of a volatile foreign exchange market.[TAKE VO] The document could affect talks over at least $1.4 billion in international loans. It suggests Nigeria should lift its remaining foreign exchange restrictions and scrap its system of multiple exchange rates. Nigeria fell into recession in 2016, its first in 25 years, largely due to the impact of low oil prices and militant attacks on energy facilities in the Niger Delta oil hub. Crude sales account for more than 90 percent of foreign exchange earnings and two-thirds of government revenue.